The 10-year return for the UTI Unit Linked Insurance Plan (ULIP) is 119.32%. This return is based on an investment made on December 19, 2014, with the NAV (Net Asset Value) as of December 20, 2024.
Understanding ULIP Returns
Unit Linked Insurance Plans (ULIPs) combine investment and insurance, offering market-linked returns. The returns from a ULIP are directly dependent on the performance of the chosen funds, which invest in equities, debt, or a mix of both. These returns are typically expressed as absolute returns over a specific period, indicating the total percentage gain or loss on the initial investment without annualizing it.
The performance of a ULIP fund can vary significantly based on market conditions, the fund manager's strategy, and the asset allocation. Therefore, returns are often presented for different investment horizons to provide a comprehensive view of the fund's historical performance.
Performance Overview of UTI Unit Linked Insurance Plan
The following table details the absolute returns for various investment periods for the UTI Unit Linked Insurance Plan, reflecting its performance up to December 20, 2024:
| Period Invested for | ₹10000 Invested on | Absolute Returns |
|---|---|---|
| 2 Year | 20-Dec-22 | 23.89% |
| 3 Year | 20-Dec-21 | 24.29% |
| 5 Year | 20-Dec-19 | 59.52% |
| 10 Year | 19-Dec-14 | 119.32% |
As illustrated, an investment held for 10 years in this specific ULIP has yielded a substantial return, more than doubling the initial investment.
Key Considerations for ULIP Investments
When evaluating ULIP returns and considering such an investment, it's important to keep the following points in mind:
- Long-Term Horizon: ULIPs are designed as long-term investment vehicles. The returns over shorter periods may not always reflect the long-term growth potential. As seen, the 10-year return is significantly higher than shorter-term returns.
- Market-Linked: The returns are subject to market risks. There is no guarantee of returns, and past performance, while indicative, does not promise future results.
- Charges: ULIPs come with various charges (e.g., premium allocation, policy administration, fund management, mortality charges) which can impact the net returns. It's crucial to understand these charges.
- Fund Options: ULIPs typically offer multiple fund options (equity, debt, balanced). The actual return depends on the specific fund(s) chosen by the investor and their performance.
- Dual Benefit: Remember that ULIPs also provide life insurance cover along with investment, which differentiates them from pure investment products.
Understanding these factors helps in making informed decisions and setting realistic expectations for ULIP investments.
